Reuters: Bankruptcy News: Belvedere says confident will soon reach debt agreement

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Belvedere says confident will soon reach debt agreement Sep 6th 2012, 17:13 Thu Sep 6, 2012 1:13pm EDT * Open to tie-up with larger rival * Plan would allow it to shed 534 mln euro debt burden * Says two-thirds of FRN holders to approve plan PARIS, Sept 6 (Reuters) - Loss-making French spirits group Belvedere is confident that its creditors will approve a plan submitted in August to repay its debt and would consider all options including a tie-up with a larger rival to achieve this, the company said on Thursday. Belvedere, the owner of France's best-selling Scotch whiskey William Peel, is on its third attempt to emerge from court protection from creditors, with whom it has been battling for four years. Approval of the plan, which Belvedere's creditors' committee has already tentatively signed off on, would allow the group to shed its 534 million euros ($673 million) debt burden, possibly through a debt-for-equity swap. The company's court-appointed legal administrator Frederic Abitbol said in an interview that he believes that two-thirds of the holders of its Floating Rate Notes - which account for the vast majority of its outstanding debt - would vote to approve the reimbursement plan. The plan includes a preferred scenario under which one or more of its major brands would be sold and another if no agreement can be reached on sales, which would see Belvedere's debt be entirely converted into shares. Belvedere has received interest for assets it values at over 1 billion euros but so far the offers have fallen short of what it was hoping to receive, Chief Executive Krzysztof Trylinski told Reuters. "Many people thought we were on the edge of a cliff and that we were forced to sell," he said. "This is why offers did not match the value of assets." Trylinski said the company was open to all options including a merger to reimburse its debt, most of which it contracted when it bought liquor brand Marie Brizard in 2006 for a reported 308 million euros. The creditors are slated to decide formally on Belvedere's proposals during a vote to be held on September 18 and 19. The plan calls for Belvedere's debt to be converted to equity if it fails to sell a major asset by March 2013. Belvedere shares closed up 16 percent on Thursday to reach 54.00 euros, on speculation that the group could become a takeover target, ac cording to comments on Internet message boards. ($1 = 0.7935 euros) (Reporting by Alice Cannet and Matthieu Protard; Editing by Christian Plumb) Link this Share this Digg this Email Reprints

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